British Land considering Vodafone-occupied data center sale to Realty Income

British Land is negotiating with Realty Income to sell an array of data centers occupied by Vodafone in London. In July, it was reported that Savills was seeking purchasers for the Network Portfolio, a collection of six facilities totaling 260,000 square feet. British Land, the proprietor of the portfolio, was in negotiations with Realty Income last week.

A transaction with three retail centers could be valued at $380 million. Previous reports indicate that the value of the Vodafone-occupied facilities alone was approximately $126 million. The Network properties are leased to Vodafone Enterprise UK until April 2032. They generate a total annual passing revenue of $7.7 million. In addition to the recently renovated Smale House office building, the properties include several data centers in London, many of which were formerly occupied by Cable & Wireless, as well as a number of office buildings containing data centers.

EGI previously stated that the sites are being marketed with the potential for medium- to long-term redevelopment for student and residential uses, as well as additional office and data center space.

Originally, Realty Income has primarily invested in grocery stores, convenience stores, dollar stores, home remodeling, and fast food restaurants.